GR Engineering Services has been awarded an engineering, procurement and construction (EPC) contract with Thunderbird Operations Pty Ltd (TOPL) for a mineral processing plant and associated facilities for the Thunderbird mineral sands project in Western Australia.
TOPL is a wholly owned subsidiary of Kimberley Minerals Sands Pty Limited (KMS), which is 50% owned by Sheffield Resources Limited (ASX: SFX) (Sheffield) and 50% owned by YGH Australia Investment Pty Limited. The contract sum is A$179.5 million ($134.3 million).
GR Engineering will commence limited work under the contract until being issued with a full notice to proceed, ahead of a final investment decision being made by KMS to pursue the development of the project, it said. The final investment decision is expected in mid-2022 with project delivery scheduled to occur over an approximate 18-month period.
In May 2021, GR Engineering restarted early engineering and design works for the project and has been progressing critical path design and procurement activities. The company has a long-standing relationship with the project since 2017.
Geoff Jones, Managing Director, said: “We are extremely pleased to have been engaged to perform a key role in the development of the world-class Thunderbird mineral sands project. GR Engineering has been associated with the project over a number of years and it is exciting to see this project progress to the next stage of development.”
In a bankable feasibility study released on the same day as this announcement, Sheffield Resources outlined a A$484 million Stage 1 project using a Single Mining Unit Plant that underpinned a 10.4 Mt/y mining operation and a processing plant design feed rate of 170 t/h. The Stage 2 project saw a duplication in year five of Stage 1 mining underpinning a 20.8 Mt/y mining operation and an increase in the processing plant feed rate to 290 t/h.